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Sales at Bakers, according to the article, “have fallen 5.9% compared to last year, squeezing the company’s cash and causing it to default on a loan.” Financial troubles are so bad, according to Bloomberg Businessweek, that Bakers Footwear listed assets of $41.9 million but a debt of $59.5 million.

In August, according to the St. Louis Business Journal, Bakers Footwear fired three of its executives and anticipated major restructuring within the company that included trimming about one-third of its workforce. That restructuring, the St. Louis Business Journal said, “called for Bakers to sell 52 stores to Aldo U.S. Inc. for up to $6.4 million in cash, and to close another 20 to 25 of its then 218 stores nationwide as leases expire.”

Bloomberg states that the proceeds of those assets and lease sales “will be used to pay bank debt and trade creditors.” The publication also said that Bakers expects to raise, per year, about $8 million through liquidation sales and $7 million after reducing expenses.

According to the St. Louis Business Journal, “Bakers estimated that it has 10,001 to 25,000 creditors, estimated assets of $10 million to $50 million, and estimated liabilities of $50 million to $100 million.”

The article also lists five of Bakers largest creditors:

East Mount Shoes Ltd. of Taiwan, owed $6.9 million

Steven Madden Ltd. of Long Island, N.Y., owed $3.7 million

The H Co. IP LLC of Los Angeles, owed $2.5 million

Bob & Bobby Inc. of Los Angeles, owed $2 million

General Growth Properties Inc. of Chicago, owed $1.6 million

In a statement issued by Bakers Footwear, the company said “Given the situation, the Company is working collaboratively with its stakeholders and moving as quickly and as expeditiously as possible to ensure that value is maximized for all of the constituents and the Company can reorganize and emerge from bankruptcy.”

“All 215 Bakers stores in 34states are open and serving customers. All other customer programs and policies, including those pertaining to coupons and refunds, remain in effect,” the release states.